July	20th,	2015

U.S.	Department	of	Labor	

Office	of	Regulations	and	Interpretations

Employee	Benefits	Security	Administration

200	Constitution	Avenue,	NW

Washington,	DC	20210		

Re:	Definition	of	the	Term	“Fiduciary”;	Conflict	of	Interest	Rule—Retirement	Investment	Advice	

(RIN	1210-AB32)

Ladies	and	Gentlemen:	

Thank	 you	 for	 the	 opportunity	 to	 provide	 comments	 regarding	 the	 Department	 of	 Labor’s	

(“Department”)	Proposed	Conflict	of	Interest	Rule	(“Proposed	Rule”)	and	Best	Interest	Contract	

Exemption	(“BIC	Exemption”)	under	the	Employee	Retirement	Income	Security	Act	of	1974,	as	

amended	 (“ERISA”).	 	 I	 am	 concerned	 that	 the	 Proposed	 Rule	 and	 BIC	 Exemption	 will	

unnecessarily	increase	barriers	for	Middle-Income	Americans	to	the	valuable	retirement	savings	

education	 and	 assistance	 that	 I	 and	 many	 thousands	 of	 other	 registered	 representatives	

provide.	It	is	my	hope	that	my	comments	are	helpful	to	the	Department.	

I	have	been	a	 registered	 representative	with	PFS	Investments	Inc.	since	1992.		My	office	is	in	

Brooklyn,	New	York.		My	clients	come	from	the	community	in	which	I	live	and	work.		They	are	

hard-working,	 very	 busy	 people,	 and,	 quite	 typically,	 before	 they	 meet	 me,	 no	 one	 has	 ever	

taken	the	time	to	sit	down	with	them	to	assess	their	financial	picture	and	discuss	basic	financial	

concepts	with	 them,	 such	as	 the	power	of	 saving	 for	 retirement	 through	 systematic	investing	

and	 what	 investment	 options	 are	 available	 to	 them.	 	 They,	 like	 so	 many	 people	 in	 Middle	

America,	do	what	they	do	daily	very	well,	but	the	reality	of	life	is	that	there	is	no	time	left	in	the	

day	after	their	work	day	and	evening	family	commitments	end	for	them	to	proactively	seek	out	

education	and	advice	on	saving	and	investing.		What	some	view	as	basic	saving	and	investing	

concepts	 that	 everyone	 already	 knows,	 is	 typically	 not	 information	 they	 know.	 	 They	 are	

starting	 from	a	 different	 baseline,	and	it	 takes	a	 substantial	 time	 commitment	 to	 understand	

these	concepts	well	enough	to	make	actual	investment	decisions	independently.		

While	it	may	appear	that	they	have access to	this	information	if	they	have	computers	or	other	

mobile	devices	from	which	they	can	search	the	internet,	they	do	not,	in	my	experience,	access

this	information	on	their	own.		It	is	time-consuming	and	overwhelming.			They	are	much	more	

comfortable	working	with	a	live	person,	and	more	successful	when	 they	do	so,	both	of	which	
studies	have	demonstrated.1 And	with	retirement	savings	and	retirement	plan	participation	at	

such	low	levels,	it	is	imperative	 that	we	help	Middle-Income	Americans	in	every	way	possible	

get	on	track	toward	ensuring	better	futures	for	themselves	and	their	families.		

Working	with	Middle-Income	Americans	to	achieve	their	financial	goals	is	what	I	have	done	my	

entire	career	in	the	financial	services	industry.			A	story	about	a	particular	client	of	mine	comes	

to	mind.	

Ten	years	after	attending	college	 together	in	1991	a	classmate	of	mine	asked	me	 to	sit	down	

with	 his	 wife	 and	 him	 to	 discuss	 their	 finances.	 	 They	 both	 earned	 a	 decent	 salary	 with	 no	

children	or	house.		Although	he	was	a	college	graduate	and	a	genius	with	computers, he	did	not	

understand	how	money	works.		I	discovered	their finances	were	a	disaster.		They	spent	money	

like	 crazy	 and	 had	 no	 retirement	 savings.	 	 The	 education	 I	 provided	 gave	 them	 an	

understanding	about	basic	 financial	concepts	and	investing	 they	did	not have.		They	chose	 to	

fund	 two	IRA	accounts	on	a	monthly	basis.		They	started	with	small	contributions,	and	I	have	

been	 able	 to	 encourage	 them	 to	 increase	 their	 contributions	 as	 they	 go.	 	 As	 the	 years	 have	

passed,	 they	are	grateful	 for	 the	 time	I	spent	 to	get	 them	on,	and	 to	keep	 them	on,	 the	 right	

retirement	 track.	 	 They	 told	 me	 that	 having	 someone	 sit	 down	 with	 them	 helped	 make	 a	

positive	financial	difference	in	their	lives.		My	experience	has	taught	me	that	regardless	of	how	

educated	 a	 person	 may	 be,	 retirement	 and	 investment	 vehicles	 are	 intimidating	 to	 most	

people.	 	 It	 certainly	 was	 for	 this	 couple,	 yet	 over	 a	 decade	 later	 they	 are	 happy	 clients,	

homeowners,	parents,	and	on	their	way	to	a	brighter	retirement.					

It	 is	 my	 belief	 that	 the	 Proposed	 Rule and	 the	 BIC	 Exemption	 as	 drafted	 will	 eliminate	 or	

substantially	reduce	people	like	this	couple’s	access	to	education	and	advice,	at	the	exact	time	

and	for	the	exact	purpose	they	need	it	most	– saving	for	retirement.		I	fear	that	the	translation	

of	education	into	advice,	the	imposition	of	the	new	BIC	contract,	the	uncertainties	created	by	

the	 Impartial	 Conduct	 Standards	 which	 substantially	 increase	 liability	 costs	 and	 effectively	

disqualify	 the	 commission	model, and	 the	 costs	 of	 complying	 with	all	 of	 the	many	 disclosure	

requirements	 will	 cause	 firms	 such	 as	 PFS	 Investments	 Inc.	 to	 conclude	 that	 it	 simply	 is	 not	

feasible	to	open	smaller	accounts.		If	a	decision	like	this	is	made,	my	clients	will	lose	access	to	

the	 education	 and	 advice	 they	 so	 badly	 need,	 and their	 futures	 will	 be	 severely	 negatively	

impacted	as	a	result.		

It	is	my	hope	that	the	Department	will	take	this	into	consideration	and	withdraw	the	Proposed	

Rule.		Thank	you	again	for	the	opportunity	to	comment.

Sincerely,

																																																												 1 Oliver	Wyman:	The	role	of	financial	advisors	in	the	US	retirement	market	(July	6,	2015).		Oliver	Wyman	states	that	

it	“.	.	.	was	engaged	to	perform	a	rigorous	investigation	of	the	role	of	financial	advisors	in	the	US	retirement	

market,	and	quantify	differences	in	investing	behavior	and	outcomes	between	advised	and	non-advised	

individuals.”
Alex	Franki

Brooklyn,	New York